Analysis of Mutual Funds

BY
Group No. 1
Amit Kumar Yadav
Ankit Bothra
Prateek Mishra
Stuti Kapoor
Sushma Vegesna
 Mutual Fund

• Mutual funds are funds that pool the money of

several investors to invest in equity or debt markets.
Mutual Funds could be Equity funds, Debt funds or
balanced funds. Funds are selected on quantitative
parameters like volatility, FAMA Model, risk adjusted
returns, rolling return coupled with a qualitative
analysis of fund performance and investment styles
through regular interactions / due diligence processes
with fund managers.
 Types of Mutual Fund

• Equity fund

• Debt fund
 Advantages of Investing into a Mutual
Fund

• Flexibility 
• Affordability 
• Liquidity 
• Diversification 
• Professional Management 
• Potential of return
• Low Costs 
• Regulated for investor protection 
 HDFC Mutual Fund
• Name :HDFC Equity Fund (Growth & Dividend)

• Date of inception : 24/12/1994

• Fund manager : Mr. Anand Laddha & Mr. Prasant Jain.

• Fund Size in Rs. Cr. :  8946.62 as on Mar 31, 2011

• Face value : Rs.10

• Minimum investment amount : Rs. 5,000/-

• Benchmark Index - CNX500

 NET Asset Value
• Latest NAV : 286.24 as on Apr 8, 2011.

• 52 –Week High : 315.35 as on Nov 10, 2010.

• 52 - Week Low : 230.43 as on May 25, 2010.

HDFC MUTUAL FUND- Asset allocation
ASSETS ALLOCATION
Equity Debt Cash & Equivalent
96.85 0.00 3.15
• Type of scheme : Open Ended Equity Fund

• Investment objective : Aims at providing

capital appreciation through investments
predominantly in equity oriented securities.
 Investment Sectors

• Banks
• Petroleum and petrochemical products.
• Software and consultancies.
• Automobiles
• Consumer durables & electronics.
• Media & entertainment.
• Pharmaceuticals & biotechnology.
• Mining and minerals.
• Engineering and capital goods.
• Steel and ferrous metal.
 Volatility Measures
Beta 0.87
Standard Deviation (Annual) 5.28

Top Holdings  As on 31 Mar

 Name of Holding % Net Assets

 State Bank of India  7.99

 ICICI Bank  6.76

 Tata Consultancy Services  4.59

 Titan Industries  4.57

 Infosys Technologies  4.47

Fund Performance vs. Benchmark
Trailing Returns
 Category Return (in
As of 08 Apr 2011  Fund Return (in %)
%)
1- Week 1.27 1.21

1- Month 6.72 6.38

3- Month -0.34 -2.25

1- Year 18.80 8.6

2- Year 56.10 40.9

3- Year 20.03 10.23

5- Year 17.05 10.99

HDFC MUTUAL FUND (Dividend)
Year Investment- Total Discounted CF. @ Discounted CF. @
return/ 10% 32%
Unit
2006 (36.28) (9977) (9977) (9977)

2006 5 1375 1375 1375

2007 5 1375 1249.87 1042.25

2008 5.2 1512.5 1249.32 868.17

2009 3 825.0 619.57 358.87

2010 4 1100 751.3 361.9

2011 4 1100 683.1 275

2011 48.35 13296.25 8256.97 3324

• Assuming that you have invested in this
dividend scheme on 1/1/2006 at an NAV of
36.28 your IRR will be 24.069%
 HDFC Mutual Fund(Growth)

Year Investment- Total Discounted CF. Discounted CF.

return/ @ 10% @ 32%
Unit

2006 107.009 (9951.83) (9951.83) (9951.83)

2011 286.24 26620.32 16531.21 6655.08

• Assuming that you have invested in this
growth scheme on 1/1/2006 at an NAV of
107.009 your IRR will be 24.65%
Templeton India short term- income Ret

• Name: Franklin Templeton Asset Management India Pvt.

Ltd.

• Date of inception: January 2002

• Minimum investment: 5000

• Entry load: Nil.

• Exit load: 0.5% for redemption within 270 days

 Objective & strategy
• To generate stable returns by investing in
fixed income securities with maturity periods
likely to be less than 3 years.

• The average maturity of the portfolio of the

scheme is likely to be between 4 months and
12 months.
 Top Holdings
Company % Asset

Reliance utilities & power 13.07

Mudra Port & SEZ 8.45

Reliance Capital 5.67

ECL Finance 5.37

KAL Airways 4.59

 Net Asset Value
2008 2009 2010 2011

NAV (Rs) 1622.94 1816.9 1918.26 1959.59

Total return (%) 9.26 11.95 5.58 2.15

52 week high 1622.94 1816.9 1918.26 ----

(Rs)

52 week low (Rs) 1488.42 1623.68 1818.07 ----

Net Asset (Rs cr.) 400.47 4653.84 5509.61 ----

Expense ratio 0.9 1.2 1.3 ----

 Fund Performance

------- Fund

----- NSE T -BILL

 Volatility Measurement

• Standard deviation : 0.7

• Sharpe ratio : 3.25

Thank you